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Strategic enhancement of local taxing power: A Comprehensive SWOT analysis approach

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  • Antonius Ragil Kuncoro

  • Roberta

Abstract

Strengthening local taxing power is a crucial element in addressing the insufficient capacity of regional governments to manage their regional assets effectively. This study seeks to identify approaches for strengthening local taxing authority within local administrations. Employing a case study methodology, the research focused on the Jombang regional government, which has a regional tax ratio of 0.6%, significantly lower than the 3% benchmark established by the Ministry of Finance. A content analysis of the data was performed to identify the Strengths, Weaknesses, Opportunities, and Threats (SWOT) in strategy development. The findings suggest that the advised strategy falls within Quadrant I, representing the Strengths–Opportunities (S-O) combination, indicating an aggressive and proactive approach. The S-O strategy refers to leveraging strengths or advantages to seize and capitalize on available opportunities. The suggested operational steps include (1) intensification and extensification; (2) adding tax payment channels; (3) integration/data exchange with other government agencies; (4) intensification of law enforcement cooperation; (5) strengthening regional tax regulations; and (6) improving the quality of human resources. While numerous studies have addressed regional tax management, this research is novel in its focus on developing regional tax enhancement strategies through a comprehensive SWOT analysis.

Suggested Citation

  • Antonius Ragil Kuncoro & Roberta, 2025. "Strategic enhancement of local taxing power: A Comprehensive SWOT analysis approach," Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, Badan Pemeriksa Keuangan Republik Indonesia, vol. 11(1).
    • Handle: RePEc:bsa:jtaken:v:11:y:2025:i:1:id:1833
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    References listed on IDEAS

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    2. Walter Hellerstein & Stéphane Buydens & Dimitra Koulouri, 2018. "Simplified registration and collection mechanisms for taxpayers that are not located in the jurisdiction of taxation: A review and assessment," OECD Taxation Working Papers 39, OECD Publishing.
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